In recognition of its role as the only Australian organisation dedicated to the political representation of women in business, the Australian Businesswomen’s Network (ABN) was invited to participate in this week’s national Small Business Forum, convened by Senator the Hon Nick Sherry, Australian Minister for Small Business. The Minister addressed an audience of 80 industry representatives and advocates of small business. He briefly presented the government’s current position on issues relating to Australian SMEs, then took questions from audience members. The ABN was represented by community leader, Suzi Dafnis. The minister started his presentation by acknowledging that the current overall business climate is very mixed especially for small business. He said that some areas of business are very flat and subdued, especially in retail, and cited the following contributory factors:
- As we emerge from financial crisis, Australians are saving more and spending less. Some areas of retail are very flat.
- The higher Aussie dollar makes it a tougher environment especially for exporters and tourism.
- There are still financial issues overhanging from the global financial crisis that are impacting on consumer and business confidence. Certain perceptions of federal and state government also impact confidence.
He noted that online selling was seeing a rapid uptake and that this was having an impact on many industry sectors, making less relevant the geographic base of the distribution of goods and services. The Minister strongly recommended that small businesses try and stay up to date with web-based business distribution and activities – particularly since only 3 in 10 small businesses are currently active online. He also stated that the rollout (over the next decade) of the NBN would be a significant enabler of online business activity. In his opening address, the Minister also commented on carbon pricing, which, he said, would in most cases have an indirect impact on small business. He advised that the Small Business Support Line has taken 35,000 calls and been provided with additional funding and that a new Business Resource Kit was launched in May, as a USB flash drive that contains a wide range of resources for small business owners. The ABN had the opportunity to ask two questions, both relating to topics identified by our members as significant public policy issues.
SMALL BUSINESS ONLINE
Question:
Taking businesses online, the Small Business Online program, closed in June with $14 million in grants given to support small businesses. There is still an incredibly large number of businesses not online which require training on how to make the most of the online opportunities. Will there be more funding for this?
Answer:
I’ve had a lot of discussion with BECs discussing how we can increase the penetration of education. It will require more resourcing of money for education and training. If I can make an observation – I think in the case of many small businesses, it’s a generational issue. If you didn’t go through high school with any contact with computer based technologies – and indeed also through universities, there is an education and training gap that is very tough to overcome. We should devote a lot more money across government. Can’t give a specific answer at this point. Upskilling in this area has to be a major focus, because for some business at least, they’ll die if they don’t adapt to this technology. As much as I struggle with it personally at times, it’s here, it’s growing – and if we don’t adapt we won’t survive. The New Digital Enterprise Program – for businesses and non-profit organisations will be introduced incrementally, initially in the areas where the NBN is being rolled out. It’s a USB flash drive that contains a wide range of resources for small business owners. Many of the BECs offer one-on-one courses and they are oversubscribed. There is a huge thirst for knowledge and training. When you have so many small business the pressure is on time and there is some fear about the technology. A lot of issues to overcome.
CHILDCARE
Question:
Senator, the rebate introduced in 2008 has had a significant impact on SMEs. To small businesses owners, every staff member is an important part of the team. When women want to get back to work – and as employers its very important to have them back – Is it likely that all legitimate childcare can be subject to rebate? I’m not an expert or responsible for childcare but based on what I know I suspect the answer is no because of the costs involved. I’d be happy to get more details from the relevant government representative. The ABN will follow up on this issue and report back on the government’s response.
Other issues raised by the audience related to:
Access to finance
The Minister agreed that access to small business finance had become more difficult and that something needed to be done about the situation. He also noted that reform for some businesses could relate to the personal property security reform, which will be classified as a secured asset rather than unsecured asset.
Red tape and regulations
The Minister expressed his strong support for deregulation. He said there are 27 reform agenda items currently being reviewed – a complex and diverse list. He believes that one item that will likely be approved relates to business names regulations, with proposed changes including a reduction in overall business names registration costs, due to registration in one state applying nationally. The Minister feels that two areas of concern that may not obtain approval relate to the duties and responsibility of directors, and regulation around plastics and chemicals
Definition of small business
An audience member raised the issue of current inconsistent definitions of small business having the unintended result of some businesses being ineligible for some government programs. The Minister indicated it would be unlikely that one definition would be put in place, as there are differing reasons why different definitions are used.
Government procurement policy and small business
The Minister agreed that it is currently difficult for small business to win government contracts due to the onerous conditions placed by government; for example, insurance and liability cover, which are often too expensive for small business He said that there is a lot more to do in this area and that he would raise the issue via the COAG agenda, as “it would be an assignment worth doing.” As your advocacy body, the Australian Businesswomen’s Network is currently drafting a follow up letter to the Minister, elaborating on our members’ concerns about the issues above. To ensure that we are as inclusive of members’ interests as possible, we would be interested in hearing of any other issues you’d like us to include in our submission to Senator Sherry. Please contact Suzi Dafnis on 1300 720 120, or via suzi@abn.org.au, or include your issues as a response to this post.
